Airborne Hi-Def On YouTube

HAI tells ANN that
'events are unfolding rapidly in Washington this week,' with the
soon-to-expire FAA Reauthorization Bill moving quickly through the
U.S. House of Representatives. The HAI has learned the House Ways
and Means Committee will release the tax portions of the
legislation later today, September 18, while the House Rules
Committee will act on Wednesday, September 19, so that the bill
could be on the House floor by Thursday, September 20.

HAI thinks that the House Ways and Means Committee will mark up
the legislation on Tuesday, September 18 with a proposal that would
create a separate category for aviation-grade kerosene used in
noncommercial flights, and would set that tax at 35.9 cents per
gallon. This would increase the tax by 14.1 cents per gallon, or 65
percent, from the current general aviation jet fuel tax. General
aviation would also see a 25 percent increase in its gas tax, from
19.3 cents per gallon to 24.1 cents per gallon. The current 4.3
cents per gallon jet fuel and gasoline taxes for airlines would not
change. The bill would reauthorize aviation taxes through September
30, 2011.

Noting that the Bush Administration and the airlines have argued
the airlines contribute more than 90 percent of the revenue going
into the aviation trust fund, while accounting for about 70 percent
of the use of the air traffic control system, HAI and other general
aviation groups reject those percentages. They argue that the
airlines use the bulk of the expensive air traffic control costs at
major airports and should be paying more.

The Ways and Means
proposal will require that all revenue going into the aviation
trust fund, attributable to the tax increases for general aviation,
be used exclusively for modernizing the air traffic control system.
There is no special set-aside for modernization in current law. HAI
believes that any fuel taxes collected from helicopter operations
should be set aside to fund a national heliport system and to
provide financial assistance in the development of helicopter
approaches.

HAI also beleives that the bill would eliminate transfer from
the highway trust fund to the aviation trust fund and states that
taxes imposed on aviation-grade kerosene would go only to the
aviation trust fund. The Joint Tax Committee has estimated that the
committee’s proposal would result in $687 million more going
into the aviation trust fund in five years.

The current aviation excise taxes expire September 30, and at
least one short-term extension of those taxes is expected before
lawmakers can reauthorize them. Events and information are
unfolding quickly, and HAI assures us that they are in contact with
Congressional staff. What IS known is that the Ways and Means
Committee will act Tuesday, September 18, the Rules Committee will
act Wednesday, September 19, and the FAA Reauthorization Bill could
be on the floor with a vote Thursday, September 20.

The leadership of the House Transportation and Infrastructure
Committee is preparing a Manager’s Amendment for the bill,
but it is unknown at this time whether additional amendments will
be allowed when the measure reaches the House floor. HAI has urged
their members to contact their elected representatives in the House
TODAY and let them know their position on this legislation and how
increases in the fuel tax will affect their operations
while the airlines are not being subjected to any
additional costs. HAI reminds the aviation community that
the House bill also includes a significant number of cost
increases for operators to include, pilot licenses, certification
of aircraft, and pilot medicals. Ouch...